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Boston Home Loan Rates Tick Down A Bit

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average mortgage rates moving lower for the third consecutive week.

News Facts

30-year fixed-rate mortgage (FRM) averaged 4.09 percent with an average 0.5 point for the week ending Jan. 19, 2017, down from last week when it averaged 4.12 percent. A year ago at this time, the 30-year FRM averaged 3.81 percent.

15-year FRM this week averaged 3.34 percent with an average 0.5 point, down from last week when it averaged 3.37 percent. A year ago at this time, the 15-year FRM averaged 3.10 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.21 percent this week with an average 0.4 point, down from last week when it averaged 3.23 percent. A year ago, the 5-year ARM averaged 2.91 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Looking for home financing information? Click the ink below.

 
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FHA Reduces Monthly Insurance Rates | What Does That Mean For Home Buyers?

January 13, 2017 By Chris Graves, Mortgage Broker

The beginning of the new year comes with some BIG news for first time home buyers. FHA announced reduced monthly mortgage insurance rates for FHA loans starting January 27, 2017. This will reduce monthly payments for FHA buyers or allow them to qualify for a higher priced home. Here’s what you need to know about this change.
New Reduced Monthly Mortgage Insurance Rates for FHA Loans

The mortgage insurance rate on FHA loans is based on a the purchase price, down payment amount, and term. Most FHA buyers obtain a 30 year loan for under $625,500 and make a down payment of less than 5%. In this case, the monthly MI rate drops from 0.085% to 0.06% per month. On a $400,000 loan, this results in a $100 per month savings. Buyers making a down payment of 5% or more will see rates drop from 0.08% to 0.055%.

For loan amounts above $625,500, the savings is even greater. Loans with 5% down payment will drop from 0.1% to 0.06%. Lower down payment loans will change from 0.105% to 0.06%. On a $700,000 loan, this results in a $315-$420 per month savings.
Effective Date of Reduced Monthly MI Rates

In the past, FHA home loan changes were dependent upon the date that a case number was issued. This is not the case with the reduced monthly mortgage insurance rates for FHA loans starting January 27, 2017. All loans disbursed on or after that date will receive the new lower rate. The date that funds are disbursed is not always the same as the closing date. Contact your lender for details. If you have a loan scheduled to close this month, it may be worthwhile to look into altering the closing date in order to receive the new reduced monthly mortgage insurance rates.

Want to learn more? Need to get pre-approved? Learn more about Chris Graves Mortgage Services @ http://chrisgravesmortgageexpert.com

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How Do I Sell My (Massachusetts) Home If It Needs Fixing?

How do I sell a home if it needs significant repair? If by significant you mean you have foundation issues, there’s water damage, the roof is bad, you have bad tenants, it would be a bad situation. In that case what you’re looking for is you don’t want your typical realtor, you don’t want your typical buyer. Typical realtor, typical buyer is probably going to present you with a sign in the yard, open house, a lot of people doing showings, coming through your property. That’s probably not what you want. It’s probably not a safe environment, it’s probably not an environment that you want to have a realtor coming in and taking photos of and posting them all online.

What you are looking for in your situation if it’s a home with significant repair needed is a renovation specialist. You’re looking for someone to come in who understands how to buy homes that need repair, that have their own money, that don’t need a bank appraisal. These renovation specialists are also not going to do home inspections. They can close quickly if that’s what you’re looking to do. They are professionals at renovating homes that need a lot of work. At the Mandrell Company we have a long list of these professionals, professionals that we’re working with and contacting on a regular basis.

If you are in need to sell a home or if you are in possession of a home that needs significant repair, you are looking to sell, we would love to connect you with these professionals. They are looking to create a win/win situation. They want to make sure that everyone involved, as well as the Mandrell Company, we want to make sure everyone involved comes out on the other end satisfied, happy with the solution that was achieved. These renovations specialists can make you an offer on your property within 48 hours. The offer would be cash. Again, they can close quickly if that’s what you need.

If you do have an interest please give us a call. You can reach us at 617-297-8641 or you can contact us through email at contact@mandrellco.com. You can also visit our website at mandrellco.com or the easiest way would be to click on the link below in the video description or the learn more button to your lower right hand side. Again, we’d love to work with you. Hopefully we can come up with a win/win solution for your home if it needs significant repair. Please reach out to us and we’ll see what we can do. Thanks.

Thanks for watching our video. Did you find this information useful? If so, please remember to like the video and also subscribe to our channel for more useful information. I would also encourage you to share this video with your friends and family. Thanks again and we’ll talk to you soon.

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What’s Up With Woburn Real Estate? Check Out These #’s

Are you a current or aspiring landlord in Massachusetts? No matter how many years you have in the rental business, fully understanding your local market is one the most important thing you can do to ensure your long-term success.  Receiving regular market updates will help you determine when’s it time to buy and when it’s time to sell. It will also allow you to see what your apartments rent for in comparison to your neighbors. Should you be increasing rents?

Here are Woburn’s multifamily sales and rental market statistics over the last 6 months of 2016.  

Total Multi-Family Listings SOLD: 9

Average Living Area by Square Feet: 2,594.00   

Average Listing Price: $521,735   

Average DOM (Days on Market): 37.87 Days 

Average Sales Price: $515,880

Average Rent for 1 Bedroom Units: $1,238

Average Rent for 2 Bedroom Units: $1,879

Average Rent for 3 Bedroom Units: $2,274

Average Rent for 4 Bedroom Units: $2,422

Want to get a FREE Sales and Rental Market Report for your specific area(s)? Just send a quick email to Contact@MandrellCo.com to receive your monthly report. In the title put the words “FREE Boston Sales Statistics” and in the body, add the up to 3 areas you’d like to receive data for. Your name and email will be added to the next monthly reporting cycle. It’s that simple to stay up to date and ahead of the curve!  

Please call us directly at 617-297-8641, for custom reports or questions above the data provided.

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Do You Have A Bank America Pre-Approval? 4 Reasons You Should Toss It In The Trash!

 Thinking about getting your home loan with the same institution where you do your banking? This may not be the best option for you if you bank with a large commercial lender. Here are 4 reasons why going smaller is better when you shop for a mortgage.

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Save Cash & Do Your Own Home Inspection 1st – 5 Things You Must Look For!

Willie Mandrell of The Mandrell Company breaks down 5 red flags that you can uncover on your own while searching for a home or investment property. You don’t need to spend money on a home inspector if you know what to search for. Discover the 5 “big money” elements of any New England home and how to avoid buying a bad piece of real estate! Hit play and listen in!

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Secrets to Paying Off Your Mortgage Ahead of Time

 While the American dream may be to own a home, my dream is to own a home FREE and CLEAR. Although a process and a long term goal, the benefits far outweigh the disadvantages of paying off your mortgage early. Even if you are not making $100,000/yr, any additional money you put toward your principal helps you in the long run. You may not see it initially but trust me… it matters over the life of the loan. 

Did you know that less than 20 percent of U.S. homeowners have paid down 50 percent or more of their mortgage?   This does not have to be your statistic. By making a few simple changes you will soon be on the road to becoming mortgage-free!

Set Attainable Goals

Decide how fast you want to pay off your mortgage. How soon can you afford to pay it off? Knowing how soon you want to pay it off will allow you to figure out how much money to add to your monthly payment to accomplish that goal. Knowing the additional money needed helps you figure out what expenses you can cut from your life.

Create a Budget

We all  know that we need a goal, a plan and deadlines to succeed. I do not know of a successful person who just goes through life “doing.” There is usually always a goal and a list of items/plan to complete in order to accomplish the goal. Once you set the goal of paying off your mortgage in “x” years, we need need to create a budget to achieve the goal. Figure out your monthly income and your monthly expenses.  See where you can free up money by reallocating some things. Then, figure out how much more you can add to your monthly mortgage payment. Be sure to write that the extra goes toward your principle or else they will put it toward your interest which defeats the purpose. 

Cut the Fat

We all hate when we have to live on the bare necessities but in order to build wealth and pay down your mortgage, sacrifices need to be made. I would much rather make the sacrifice today in not having my daily coffee or show subscription in exchange for paying off my mortgage early. Let’s say I am able to pay off my mortgage in 15 years if I live “broke” on purpose. That means, in 15 years I could buy all the shoes I want with the extra money I’m saving by not having a mortgage. Sacrifice $200-$1000/mo now  to essentially earn an extra $2000 for life later?… I’ll take that ALL DAY!

Large Payments

Tax season comes every year without fail. Most of us anticipate a refund check. Most of us also have that money “spent” before we receive it for things such as vacation, new TV, Car down payment… Invest in your future and use that lump sum toward your principle. You will be happy you did sooner than you think. We are a society of immediate gratification, we need to think long term if we ever have a chance at building wealth. 

Refinance

Refinancing gives you the ability to obtain a better interest rate. Even if you have the same interest rate… you could potentially lower your monthly payments by virtue of the fact that you are now redistributing your loan repayment period to 30 years. For example, you purchased at at $200,000 and your mortgage was $1,500. Now you owe $150,000 with a refinance, your payment decreases to $1,100. All you did was refinance. Since you were able to afford $1,500 initially, now you should pay $1,100 with an additional $400 toward your principal. Couple that with any extra money you were able to save due to cutbacks…. your mortgage will be repaid in no time. 

Want more tips on how to pay off your mortgage? Send us a message to be connected to loan officers who can advise on your options. 

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In our next topic of conversation with Elizabeth Newcombe, we asked her what the first step in the home buying process is. Liz is involved in this process on a regular basis so getting her perspective on the topic is very beneficial. For anyone looking to purchase a home in the near future, this is a great short video on how to get started with the home buying process and what to expect throughout.

For more information on homes for sale in Attleboro, contact Elizabeth Newcombe at 413-834-8052

 

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Recently we sat down with our very own Elizabeth Newcombe to cover a series of topics. One of these topics was about what is happening currently in her local real estate market, Attleboro. As most of you know, the real estate market for the greater Boston area is very competitive right now and it is even making its way down to Bristol and Norfolk counties. Liz provides a firsthand look into everything you want to know about the market in Attleboro right now.

For more information on homes for sale in Attleboro, contact Elizabeth Newcombe at 413-834-8052

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Do you have a single or multifamily property in the Boston area with problem tenants? Are your tenants not paying or just causing you headache? If so, we may have a quick solution for you.

The Mandrell Company works with a long list of local real estate investors and developers and each of them is looking for new investment property. These investors buy single family and multi-family homes of any size, any price range, any number of units, and in any condition.

Working with us and our investors we can help to sell your home quickly and easily. You don’t have to worry about spending money on repairs, putting a sign in the yard, having strangers drop in through your house,  or wondering when your property will sell.

When you sell your troubled property with our investors and developer clients:

• You get multiple cash offers and avoid most normal closing costs
• You sell directly to them and there isn’t often no Realtor commission to pay
• You sell your house in “as is” condition – no cleaning or repairs to make
• You can close quickly – if that’s what you need.

Our clients are also buying properties in foreclosure, probate, pending evictions, inherited, vacant or abandoned, or just in need of much work.

If you are interested in a quick cash offer on your property, please call our office today at 617-297-8641 or email me at Willie @ MandrellCo.com

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How Bad Credit Is Costing You $100’s of Thousands

This chart blew my mind when I first came across it. Everyone talks about the importance of having good credit but to be able to see it charted out makes you really take a hard look at your financial picture. (See Chart Below)

“The Cost of Bad Credit” simply shows why a good credit score is crucial to your wallet even when talking about the difference of 100 points. Think about this. If you have a 620 credit score and take out a 20,000 car loan at a 9% rate of interest, you are essentially paying $2300 more (over a typical 5 year loan period) than the individual with a 720+ score. That’s number isn’t that crazy but what this chart doesn’t consider is how many vehicles a person will own during their life span. Most Americans keep their vehicles for 5-6 years before looking for something new.  If you start driving at the age of 16 and continue buying cars until you reach the age of 80 (and drive until 86), you may end up owning 12 vehicles during your life time. If you were at a loss of $2300 for each of those 12 purchases, your bad credit will have cost you a total of $27,600!!

Quick Summary:

For having fair credit (a 620 score) you pay $2300 more in interest for the same car purchase as someone with a 720+.

$2300 * 12 vehicles purchases during your life = $27,600 you paid more than the person with good credit. If you really want to get geeky about it, you can assume that the person with good credit reinvested their $27,600 in savings over the years and created an even wider wealth gap!

If losing 27,600 isn’t enough to make you straighten out your credit, than consider that I ran these numbers with a 620 score.  Think about the wealth gap being created for the person with a score of 580 or below. And if you want to buy a home at some point you could be talking about 100’s of thousands of dollars you’re losing by not keeping your credit top notch.

If you’d like to learn more about improving your credit score and other personal finance topics, consider taking a FREE wealth building course offered through Roxbury Community College. You can view schedules and RSVP at http://www.UrbanMoneyMatters.com

 

Why Bad Credit Cost You Thousands

 

 

 

 

 

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What Credit Score Do I Need To Purchase A Home?

Are you thinking it’s time to purchase a home but not sure you’re credit score meets minimum requirements? In a video interview, Chris Graves of Sierra Pacific Mortgage, talks about credit scores and exactly what’s needed to make sure your mortgage application gets approved. If you have any additional questions, or would like to get yourself pre-approved for a mortgage, complete the form below and your information will be sent directly to Chris’s inbox.

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How long will mortgage loan rates stay at historic lows? Is now a good time to purchase a home? Should I refinance my existing mortgage? These are the questions everyone is asking. No one knows (outside of the FED) where rates are headed but common sense should tell us they can’t get much lower than they are currently. If you’re thinking of making a move….now would be a good time.

Here are the national average mortgage rates for this week.

  • 30-year fixed-rate mortgage (FRM) averaged 3.94 percent with an average 0.6 point for the week ending August 13, 2015, up from last week when it averaged 3.91 percent. A year ago at this time, the 30-year FRM averaged 4.12 percent. 
  • 15-year FRM this week averaged 3.17 percent with an average 0.6 point, up from last week when it averaged 3.13 percent. A year ago at this time, the 15-year FRM averaged 3.24 percent. 
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.93 percent this week with an average 0.5 point, down from last week when it averaged 2.95 percent. A year ago, the 5-year ARM averaged 2.97 percent.
  • 1-year Treasury-indexed ARM averaged 2.62 percent this week with an average 0.3 point, up from last week when it averaged 2.54 percent. At this time last year, the 1-year ARM averaged 2.36 percent. 

To give you an idea of where rates currently stand, compared to years past, we’ve provide you with the chart below.

Boston Mortgage Rates By Decade

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Your invited to join Boston Wealth Builders at the Quincy Marriott Hotel (September 19th, 2015) as we learn how to intelligently improve our property values. Come get a better understanding of what local appraisers are looking for when determining the values they place on property and how you can ensure your home’s appreciation. This event is free to the public but you must RSVP as seating is limited.

The residential appraisal is an integral part of the real estate transaction since appraisers are the trusted vendor for lenders in the mortgage business.  Whether you’re a real estate homeowner or an investor, understanding the appraisal process is a critical component for increasing your property value for the years ahead.  Danyl Collings, of Forsythe Appraisals, will be addressing the following items in regards to real estate appraisals:

1.)  What are the three main items appraisers are looking for when appraising real estate investment properties?  Why are they important?

2.)  What information can you provide the appraiser to expedite your appraisal process and getting the report into the lender?

3.)  Understanding your improvements to the property relative to the property’s market neighborhood and Town/City.

4.)  Why is rental income important in an investor appraisal?

Since 2009, Danyl has served as branch manager for Forsythe Appraisals, LLC – Boston Branch which provides residential appraisal services in MA, NH and RI.  In this role, he is in charge of the sales, marketing, recruiting, training and report quality and delivery for the Boston Branch.  Forsythe Appraisals, LLC is the largest private appraisal firm in the County with over 250 + appraisers throughout the United States.

To RSVP for this event, please click the link below. You’ll be asked to create a FREE account and join Boston Wealth Builders. Once you’ve become a member you can RSVP and save your seat. Hope to see you there!

http://www.BostonWealthBuilders.com

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Single Family Flip Opportunity – Norwood, MA

Are you looking for your next flip? This may be one you’ve been waiting for!

420 Prospect st Norwood, Ma – 

This is a single family condo attach.  The unit consist with 3 beds and 1.5 bath, living room and dinning room and a full enclosed attic that can be use as a bedroom, plus a basement. Wholesale price $ 280k … Comps in the area around $385k to $400k.. This property is located within minutes to Westwood neighborhood and major highways. Great location!!!

Photos can be seen with the following link

https://www.icloud.com/sharedalbum/#B0D59UlCqJsWVJp

For more information contact Julio Evangelista at 407-914-5344 or Julio@ComEquityFunding.com

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Attention Future Home Buyers:

One of our great lenders has an exciting new mortgage program and I’d like to share the details with you!

Our lender has partnered with the National Homebuyer Fund (NHF Platinum Program). The NHF Platinum Program is designed to assist low-to-moderate income homebuyers with the purchase of a home, by providing down payment and/or closing cost assistance (currently in the form of a Grant). The grant does not have to be repaid. The grant (up to 5% of the total loan amount) can be used towards down payment or closing costs.

Many times this assistance allows homebuyers to purchase a home much sooner than they thought possible. One of the most attractive features of the Program is that you don’t have to be a first-time homebuyer. Even if you owned a home in the past, you may qualify. The Program is available for the purchase of an owner-occupied principal residence, including condominiums and planned unit developments, and offered in various states, including Massachusetts & New Hampshire.

 A borrower can purchase a single family, condo, or PUD with no money down with a credit score as low as 640.  The grant is combined with either a Fannie Mae (Conventional Loan) My community mortgage, FHA, VA, or USDA loan.

 Our lender will sponsor and obtain the grant for the borrower so you no longer will have to work with separate entities to obtain a down payment assistance grant!!

For more information about the program and to see if you qualify, please call our offices at 617-297-8641 or email us at contact@Mandrellco.com. We would love to connect you with our mortgage broker and help you achieve that long awaited home purchase! Call today!

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Attention Boston Real Estate Investors:

The Mandrell Co office has an off market FLIP opportunity in Weymouth, MA. It’s a 1450 square foot home with 3 bedrooms, 1.5 Bath home sitting on an 1 acre lot. The house is located at 641 Pleasant Street. The seller looking for cash offers and a quick closing. The home needs some work but has a ton of charm and character. Comparable sales in area say $400’s and none of the them are sitting on such a large lot.

Seller asking $259,000. Buyers to do own due diligence. Pending tax liens will be paid by seller at closing. Contact Willie Mandrell at 617-297-8641 or Willie@MandrellCo.com for more information and to schedule a showing.

Looking for other investment opportunities? Join Boston Wealth Builders! Membership is free and takes 2 mins to sign up. Join the group at http://www.BostonWealthBuilders.com

 

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Are you looking to buy a home in the near future? Has less then perfect credit stopped you from buying a home in the past? Home ownership is a huge part of the American dream and no one should be denied access. Here are 6 steps to improving your credit so you too, can achieve the American dream.

1. Pay down your credit cards to below 40%.

Ideally 30% but let’s start small and work our way up. It can be overwhelming if you have 5 credit cards that are all near their limit. Here are a couple strategies you could employ.  A. Pay off/down the highest interest card first. The money you save on interest payments will go toward paying off your next card on the list. B. Pay off/down the credit card with the smallest limit. Paying off something quickly gives you motivation to move on to the next. You feel motivated after paying down a $500 credit card in 2 months compared to paying $500 off a $5,000 credit card because you still see a high balance.

2. Slow down on opening new accounts

Each new account places an inquiry on your credit report, which decreases your credit score. When creditors see these inquiries, it decreases your chances of being approved. Also, new credit means less credit history, which is frowned upon. Side note: Choose cards with rewards so you earn while you spend.

3. Add someone’s credit history to your profile

If you have a family member that has good credit and good credit history, consider asking them to add you to their oldest credit card and preferably the one with the best credit history attached to it. While you will not adopt their credit score, you will obtain their history, so if they have owned the card for 10 years, you now have that 10-year history on your credit report. We DO NOT recommend you having access to their credit however. No matter how good your intentions, you never want to jeopardize someone’s credit for your own gain. They can give you their history without giving you access to their credit.

4. Get a secured line of credit

If you were unable to add someone’s credit history to your profile, your next best option is to open a secured line of credit. Essentially, you would put money on a card (like a debit card) and whatever amount you deposit, becomes your new credit limit. For example, you deposit $500 on your secured credit card, you now have a $500 credit limit on your card. If you decide to increase it to $1000, you pay the $1000 upfront and you can borrow against it up to $1000. The benefit is that if you decide to close the account, your money is refunded. Also, secured credit cards report to the credit bureaus unlike a debit card or some other services out there. Do your research and ask questions. See which card is best suited for your needs. The most important thing is to make sure they report to all 3 credit bureaus to help you establish credit.

5. Diversify your credit profile

You do not want all your credit to be of the same type. The goal is to have a diverse portfolio such as credit cards, car loan, mortgage, etc. Creditors want to see that you are responsible over a variety of credit types.

6. Get your credit limit increased with current lenders

I do this every year. If you have a great track record of always paying on time, you can ask your credit card company to increase your limit. Most allow you to do this on the website and it is instant. This serves 2 purposes: A. It increases your credit iimit and the % of credit owed. For example $400 on a $500 limit is 80% utilization, however, $400 on a $1000 limit is only 40% utilization. Do you see how this can improve your credit score without you doing anything more than making a phone call? This is not something you do monthly but rather on a yearly basis because some companies will pull your credit to make the decision which could hurt you in the short term but will be beneficial in the long. B. It gives you greater access to funds. Wouldn’t it be nice to know that you have an extra $1000 of available credit in case of emergencies?

Would you like to learn more about how to improve your credit? Sign up for FREE course – “How To Achieve An 800+ Credit Score & Never Be Denied For Anything“. You can find details on this course with the following link. http://www.meetup.com/Urban-Money-Matters/

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REDUCTION IN FHA MONTHLY MORTGAGE INSURANCE!

I hope all is well!  I wanted to let you know that FHA has recently announced that as of January 26, 2015, the monthly mortgage insurance on FHA loans is being decreased from 1.35% to .85% on loan to values between 95.01% – 96.50% and from 1.30% to .80% on loan to values at 95% or less.

On a $100,000 loan, for example, this reduction in monthly mortgage insurance will reduce the monthly mortgage insurance payment from $135/mo to only $85/mo.

On a $400,000 loan, for example, this reduction in monthly mortgage insurance will reduce the monthly mortgage insurance payment from $450/mo to $283.33/mo.

Not only will buyer that need to use FHA loans be able to save more money monthly but they will also be able to afford a much higher purchase price due to monthly MI reduction!

Please let us know if you have any current FHA mortgages that you would considering refinancing and we can connect you with our mortgage specialist! Of course if you’re considering making a home purchase, give us a call and we can make the connection.  The FHA 30 Year Fixed rates are as low as 3.125%. Other than FHA he also has access to conventional & mass housing loans with as little as 3% down with NO PMI!.

Here’s to a prosperous 2015!

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One of the largest obstacles between you and home ownership is coming up with enough money fund the required mortgage down-payment.  Let’s assume that we’re looking for the average single family home in Massachusetts which is roughly $350,000. Let’s also assume you are like the majority of home buyers in this state and qualify for an FHA Loan, which is a 3.5% down payment or roughly $12,250. This isn’t amount of money most people have sitting in there bank accounts. So how do you find the cash to fund your dreams of home-ownership? Here are a list of things most buyers do to save up some cash:

Side Job or Temp Work –  Can you pick up a side job or work for a temp agency?  It’s may not be something you  ant to do permanently, but it’s worth it to reach your home-ownership goals.  Let’s assume you can pick up a part time job working 10 hours per week at $15 per hour. If you worked 48 of 52 weeks in the year you’d have an extra $7200 (before taxes) to add to your home savings account.

Cut Cable & Phone Bill – Many of us have Comcast or Verizon packages that consist of every movie channel, sport package and various other upgrades. Are these things we can live without for a little while?  The same goes for many phone bills. Many of us are paying $40 per month or more for data packages while the only thing we do with our phone that require data is posting to Facebook.  If you can reduce one of these bills by $50 or two of them by $25 each, you would be saving a total of $600 for the year.

Cut Gift Spending – We all love our family and friends but could you cut back on birthday and holiday gifts for one year? I think your friends and family would stand by you if your gift were less expensive this year because you’re saving to purchase a home.  Statistics show cutting this spending out entirely can put another $600 in your pocket for the year.

Work Overtime – Are there overtime hours available at your current job? Maybe it’s time to stay late or come in early. It may be a good idea to approach your manager and see what extra hours he/she can offer you.

Save Your Tax Returns – Getting a nice check back from the government this year? Don’t view this influx of cash as discretionary spending. Many Americans look at this check(s) as chance to buy a bigger TV or various other luxuries.  Be smart and save this money for your down payment.  The big screen will look better next year in your new home.

Hang At Home – Let’s assume that you’re like most of us and you love to hang out on the weekends. If you’re spending an average of $100 per weekend (drinks, food, movies etc) and your going out every other weekend, you’re spending an average of $2600 per year on entertainment. Can you cut than down this year to just 1 weekend per month? If so you’re saving $1300 per year and you’re that much closer to you saving goals.

Cut Your 401K Contributions – I’m a big believer in saving for your retirement, but I believe even more that every individual should own their own home. It may be a good idea for you to speak with your HR department and cut down (or cut out) your retirement contributions and add those additional funds to your savings.

Ask Your Family For Help – When your family sees all the lifestyle adjustments you’ve made to save for home ownership, they will see how important it is to you and will become important to them as well.  Can they help you with your down payment?

Are you looking for more helpful home ownership tips? Like us on Facebook at https://www.facebook.com/WMandrell.

You can also connect with us on Google Plus.

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Is your New Years resolution to get yourself more involved in the Boston real estate scene? Here are a few great events to get you headed in the right path.

Mutlifamily Investments 101 – Investing & Home Buying Seminar

Thursday, January 22, 2015  – 6:00 PM to

 This is a great event for first time landlords or if you’re thinking about getting into the business. The seminar will run you through all the basics of investing in Boston real estate including evaluating cash flow numbers and multifamily techniques. You can find further details and RSVP with the following link. http://www.meetup.com/Networth-Investors/events/219497293/

How To Get An 800+ Credit Score & Never Be Denied For Anything

Saturday, January 24, 2015  –  to

Are you or someone you know looking to buy a home or invest but a less than perfect credit score holding you back? This is the meeting for you! Learn the ins and outs of your personal credit and how to effectively increase your score!  For location and to RSVP click the attached link. http://www.meetup.com/Urban-Money-Matters/events/219296945/

Home Flippers Financing Summit

Saturday, January 31, 2015  –  9 to 5

Are you looking to flip houses in Mass but not sure how to get the financing? Have you heard about investors flipping property using private financing or “other peoples money”? Come learn how they’re doing from real Boston investors. This seminar will teach you how to find and recruit private money investors to fund your flips!  Seating is limited!
Purchase your tickets with the following link. http://www.eventbrite.com/e/house-flipping-finance-summit-tickets-14920536727?aff=WillieMandrell

 

 

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Massachusetts Home Buying Timeline

As a future home buyer, it’s a good idea to understand as much as you can about the process so little comes to you as a surprise when you get started. Many first time buyers or buyers who have been out of the market for awhile often think the process take much longer than it does, while many others think the process happens much more quickly than it really does.  At the end of this post you will find a Massachusetts home buying timeline you can save and use as a guide as you go along.   

The Offer to Purchase:

Once you’ve lined up your financing and found a home that suits your needs, the next step would be to make an “Offer to Purchase”. You and your real estate agent would discuss what you think the property is worth and if that number is what you’re willing to pay for it. When the OTP is submitted to the selling parties, it will have the price you’re offering as well as several contingency clauses. Contingency clauses are stipulation in the OTP that protect your interest and prevent the purchase from moving forward if they are not met. Two of the most common clauses inserted into the offer  are the “Home Inspection” and the “Mortgage” contingencies. We will discuss each of these.

At the time of your initial offer, a small deposit ($500-$1000) must be submitted to the selling party. This deposit is to “bind” the offer and is fully refundable if the seller does not accept your offer or if one of the contingencies are not met. The buyer will typically allow the seller 24-48 hours to respond to the offer with acceptance, rejection or a “counter offer”. If the seller counters your offer you will negotiate back and forth until both parties have an agreed upon price & terms or decide to  walk away.

Home Inspection Period:

Once you’ve come to an agreement with the selling party on price and terms, you will enter the “Home Inspection Period”.  This period typically last about 10 days and during this time you are allowed to hire a home inspector to professionally review the property you intend to purchase. The home inspectors job is to walk through the property with you and bring to light any current issues with the home as well as things that may arise in the future. She will also provide you with a full written report of her findings after the inspection is completed.

There are 3 paths you can take after the home inspection takes place.

  1. The inspection reveals there is nothing wrong with the home and everything is in great condition. At this time you would inform the seller that you will be moving forward with the purchase.
  2. The inspection reveals there are some minor issues with the home and based on these issues you would like to lower the price you initially offered the seller. You may then go back and forth with the selling party until both parties have again agreed on a new price.
  3. The home inspector found issues with the property that are beyond your comfort level and you no longer wish to purchase the home. At this point you will inform the seller that you are backing out the transaction. The initial deposit will be refunded to you per the home inspection contingency.

Purchase & Sales Contract:

Assuming you selected to move forward with the purchase of the property in either case 1 or 2 above, you would now move into the purchase and sales contract. The “P&S” is the contract that further lays out the details of the purchase. These details will include dates, times and “to do list” for both the seller and the buyer. Some of these items will include:

  1. What date the buyer will need to have his financing in order for the purchase
  2. What items of the sellers are included in the purchase and which are not
  3. How tenant finance will be handled (if the property is a multifamily building)
  4. What  date will the buyer take possession of the property (the closing date)  

At the time of the purchase and sales agreement the buyer will be required to place an additional deposit with the selling party. This deposit will typically be 3-5% of the total purchase price. This is again to bind the contract and will be refunded if for some reason the buyer failed to be approved for the mortgage. This return of deposit is outlined in the purchase and sales “Mortgage Contingency”.

The Closing:  

Closing day usually take place bout 45-60 days after the initial offer to purchase was accepted by the seller… assuming everything goes smoothly. The closing day is when both the selling and buying parties get together and make the transaction official. As the buyer you will need to bring any final money due to the table. The seller will need to make sure any outstanding bills in connection with the house are paid off allowing you to take over with a clean slate. On this day the transaction will be recorded with the local registry of deeds and the buyer becomes the new owner.

 Massachusetts Home Buying Timeline

Still have questions? Please call us and one of our agents would be happy to provide you with some assistance! 617-297-8641 or email Contact@MandrellCo.com

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